Demand in the Chinese seamless pipe market has remained weak and shows no signs of improving. Most Chinese mills have left their domestic offers unchanged over the past two weeks due to sluggish demand and uncertainty in the market, while traders have reduced their offers by around RMB 50-100/mt ($9-16/mt) amid subdued activity. Export offers of seamless pipes from China have declined by around $20/mt over the period under review amid insufficient demand from major export destinations. Chinese traders remain cautious about replenishing their inventories due to the uncertain outlook. Most seamless pipe suppliers in China have no intention of adjusting their quotations in the short term in spite of the unsatisfactory sales performance, as lower prices will not boost demand.
Domestic prices of seamless pipes, 2"-8" grade B as per ASTM A106/API 5L, are at around RMB 6,000-6,100/mt ($971-987/mt) ex-works, including 17 percent VAT. Chinese domestic prices of 2"-6" seamless pipes according to GB/8162-8163 are varying at around RMB 5,000-5,100/mt ($809-826/mt) ex-works. Chinese ex-stock prices for 2"-8" seamless pipes according to GB/8162-8163 in Shanghai are at around RMB 3,850-4,050/mt ($623-656/mt) ex-warehouse, including 17 percent VAT, while traders in Tianjin and Beijing are offering the same pipes at around RMB 3,800-4,150/mt ($615-672/mt) ex-warehouse.
Current export quotations from most Chinese manufacturers for 2"-6" grade B seamless pipes according to ASTM A106/API 5L are on average at $660-700/mt FOB.
$1 = RMB 6.17